The minutes of the Federal reserve’s June meeting that were released on Wednesday show few signs that there will be an early rate hike. The central bank, which underlined the economic impact of Greece's uncertainties, will wait for a flow of healthy US data before making changes to its interest rate.
"Many participants emphasised that, in order to determine that the criteria for beginning policy normalisation had been met, they would need additional information indicating that economic growth was strengthening, that labor market conditions were continuing to improve, and that inflation was moving back toward the Committee’s objective," the minutes noted.
Although some analysts were keen on a September rate hike, mixed econom
ic data from the US and turmoils in Greece and China has reduced the possibility of such an action.
Leading entities such as the International Monetary Fund (IMF) have asked for the rate hike to be delayed in order to keep borrowing costs around the world stable, helping global markets.
The Federal Reserve’s policy-setting committee “cautioned against a premature decision,” acknowledging that raising rates too soon could damage the economy.
During the meeting, which also discussed predictions of economic growth in the US measured in terms of gross domestic product (GDP), officials forecast an economic expansion in the second quarter.
The fund is also anxious over US inflation, as it has not reached a desired annual target of 2 percent despite a tightening labor market which has forced wages higher.